How do I get a Streamlined Offer in Compromise Program (IRS Form 656)

All IRS Back Tax Help comments are in blue.  This post is about the streamlined version of the IRS Offer in Compromise.  (IRS Form 656)  

If you know you need to take action, read my thread about whether or not you should hire someone (You shouldn’t automatically) titled “How do I hire IRS back tax help?”  Here’s the link:

https://irsbacktaxhelp.wordpress.com/2011/10/31/i-owe-the-irs-back-taxes-how-do-i-hire-irs-back-tax-help/

As usual,  If you like the tone of these posts, contact me for consultation.  I can be reached at irsbacktaxhelp@gmail.com.  Before you email me, please click on and read “About IRS BACK TAX HELP”.

Here is the link to irs.gov:

http://www.irs.gov/businesses/small/article/0,,id=239097,00.html

Here are the new guidelines for the Streamlined Offer in Compromise program:

• Fewer requests for additional financial information  This is a big improvement.  Many IRS Offers in Compromise are rejected not because they weren’t valid, but because the deadlines were missed or people gave up.  Once you have submitted your IRS Form 656, you need to commit to all their admin requirements.  
• If necessary, requests for additional information by phone, not by mail
• Greater flexibility when considering your ability to pay  Three ways:  20% down with lump sum, 20% down with payments over 2 years, or a five-year installment agreement for the amount of the offer with the monthly amount  submitted with the IRS Form 656.  

You can be:  

• Wage earners
• The unemployed
• Self-Employed taxpayers with no employees and gross receipts under $500,000

and,

• Your total household income is $100,000 or less, and
• The amount you owe is less than $50,000 when your offer is filed

References/Related Topics

• Offer in Compromise

This also assumes you have filed all of your over due taxes.  You must have those filings complete prior to submitting an Offer in Compromise.  If Substitutes for Returns have been filed for you by the IRS, that is acceptable to them.  Typically, in our industry the minimum fee to do an IRS Offer in Compromise is $2,500.  If it makes more sense for you spend your time and effort, pursue this on your own.  If you don’t have the time, hire someone (us) to do this work for you.  If you don’t address it, it will get worse.